diff --git a/.woodpecker.yml b/.woodpecker.yml
index becb23e..fbc0acf 100644
--- a/.woodpecker.yml
+++ b/.woodpecker.yml
@@ -109,6 +109,10 @@ steps:
         # Increase file descriptor limit for Ansible (max safe value)
         ulimit -n 65536
 
+        # Disable Ansible callbacks to reduce file watchers and prevent inotify exhaustion
+        export ANSIBLE_CALLBACKS_ENABLED=""
+        export ANSIBLE_GATHERING=explicit
+
         # Install dependencies: curl for HTTP requests, jq for JSON formatting
         apk add --no-cache curl jq > /dev/null 2>&1
 
@@ -161,6 +165,10 @@ steps:
         # Increase file descriptor limit for Ansible (max safe value)
         ulimit -n 65536
 
+        # Disable Ansible callbacks to reduce file watchers and prevent inotify exhaustion
+        export ANSIBLE_CALLBACKS_ENABLED=""
+        export ANSIBLE_GATHERING=explicit
+
         # Install dependencies: curl for HTTP requests, jq for JSON formatting
         apk add --no-cache curl jq bash > /dev/null 2>&1
 
@@ -189,6 +197,8 @@ steps:
         # Read the generated JSON or re-run drift check
         echo "==> Verifying drift status for pipeline result..."
         set +e
+        ANSIBLE_CALLBACKS_ENABLED="" \
+        ANSIBLE_GATHERING=explicit \
         ansible-playbook -i ansible/inventory/hosts.yml ansible/playbooks/drift-check.yml > /dev/null 2>&1
         DRIFT_RC=$?
         set -e
diff --git a/ansible/playbooks/drift-check.yml b/ansible/playbooks/drift-check.yml
index c0023a0..9cb69b9 100644
--- a/ansible/playbooks/drift-check.yml
+++ b/ansible/playbooks/drift-check.yml
@@ -112,12 +112,13 @@
 
     # ─────────────────────────────────────────────────────────────────────────
     # Debug output: Show structured drifted files for parsing
-    # Format: DRIFTED_FILES: file1, file2, file3
+    # Format: DRIFTED_FILES=file1,file2,file3 (or empty if no drift)
     # This makes it easy for update-gitops-status.sh to extract changed files
+    # ALWAYS output this line for reliable parsing, even when empty
     # ─────────────────────────────────────────────────────────────────────────
     - name: Output structured list of drifted files for GitOps status server
       ansible.builtin.debug:
-        msg: "DRIFTED_FILES={{ drifted_files | join(',') }}"
+        msg: "DRIFTED_FILES={{ drifted_files | join(',') if drifted_files | length > 0 else '' }}"
 
     - name: Output sync status marker for parsing
       ansible.builtin.debug:
diff --git a/update-gitops-status.sh b/update-gitops-status.sh
index 58a8d8c..c9f28de 100644
--- a/update-gitops-status.sh
+++ b/update-gitops-status.sh
@@ -64,7 +64,13 @@ echo "Step 1/4: Running drift-check playbook..."
 
 # Capture playbook output to a temp file for parsing
 PLAYBOOK_LOG=$(mktemp)
-trap "rm -f $PLAYBOOK_LOG" EXIT
+KEEP_LOG="${KEEP_PLAYBOOK_LOG:-false}"
+if [ "$KEEP_LOG" = "true" ]; then
+  PLAYBOOK_LOG="./drift-check-output.log"
+  echo "  Playbook output will be saved to: $PLAYBOOK_LOG"
+else
+  trap "rm -f $PLAYBOOK_LOG" EXIT
+fi
 
 # Run playbook (no -v flag to avoid file descriptor exhaustion in containers)
 # Exit code: 0 = synced, non-zero = drift detected (expected)
@@ -80,8 +86,10 @@ DRIFT_RC=$?
 set -e
 
 # Show playbook output for debugging (compact)
-echo "Playbook output:"
-cat "$PLAYBOOK_LOG" | tail -20
+echo "Playbook output (last 25 lines):"
+cat "$PLAYBOOK_LOG" | tail -25
+echo ""
+echo "DEBUG: Full playbook output saved to: $PLAYBOOK_LOG"
 echo ""
 
 # ─────────────────────────────────────────────────────────────────────────────────
@@ -105,16 +113,25 @@ fi
 # Extract structured drifted files from playbook output
 # The drift-check.yml playbook outputs: DRIFTED_FILES=file1,file2,file3
 # Search for the pattern in the output
+echo "  DEBUG: Searching for DRIFTED_FILES in playbook output..."
 if grep -q "DRIFTED_FILES=" "$PLAYBOOK_LOG"; then
+  echo "  DEBUG: Found DRIFTED_FILES pattern"
   DRIFTED_FILES_STR=$(grep "DRIFTED_FILES=" "$PLAYBOOK_LOG" | tail -1)
-  # Remove ANSI color codes and extract the value
-  DRIFTED_FILES_STR=$(echo "$DRIFTED_FILES_STR" | sed 's/.*DRIFTED_FILES=//' | sed 's/\x1b\[[0-9;]*m//g' | xargs)
+  echo "  DEBUG: Raw line: $DRIFTED_FILES_STR"
   
-  if [ -n "$DRIFTED_FILES_STR" ]; then
+  # Remove ANSI color codes and extract the value
+  # Handle both formats: "DRIFTED_FILES=..." and "msg": "DRIFTED_FILES=..."
+  DRIFTED_FILES_STR=$(echo "$DRIFTED_FILES_STR" | sed 's/.*DRIFTED_FILES=//' | sed 's/\x1b\[[0-9;]*m//g' | sed 's/".*$//' | xargs)
+  echo "  DEBUG: Extracted value: '$DRIFTED_FILES_STR'"
+  
+  # Check if the value is an empty list ([] or empty string)
+  if [ -n "$DRIFTED_FILES_STR" ] && [ "$DRIFTED_FILES_STR" != "[]" ] && [ "$DRIFTED_FILES_STR" != "" ]; then
     # Parse comma-separated list into array
     IFS=',' read -ra CHANGED_FILES <<<"$DRIFTED_FILES_STR"
     
-    # Clean up whitespace
+    echo "  DEBUG: Parsed ${#CHANGED_FILES[@]} files"
+    
+    # Clean up whitespace and normalize paths
     for i in "${!CHANGED_FILES[@]}"; do
       CHANGED_FILES[$i]=$(echo "${CHANGED_FILES[$i]}" | xargs)
       
@@ -131,7 +148,24 @@ if grep -q "DRIFTED_FILES=" "$PLAYBOOK_LOG"; then
     done
     
     DRIFT_COUNT=${#CHANGED_FILES[@]}
+  else
+    echo "  DEBUG: DRIFTED_FILES is empty or []"
   fi
+else
+  echo "  DEBUG: DRIFTED_FILES not found in playbook output"
+  echo "  DEBUG: Attempting to parse from changed task output..."
+  
+  # Fallback: Look for "changed:" indicators in the playbook output
+  if grep -q "changed: \[" "$PLAYBOOK_LOG"; then
+    echo "  DEBUG: Found changed tasks, but no structured DRIFTED_FILES output"
+    echo "  DEBUG: This might indicate a playbook output format issue"
+  fi
+fi
+
+# Additional validation: If OUT_OF_SYNC but no files found, show warning
+if [ "$SYNC_STATUS" = "OUT_OF_SYNC" ] && [ "$DRIFT_COUNT" -eq 0 ]; then
+  echo "  ⚠️  WARNING: Status is OUT_OF_SYNC but no drifted files were extracted"
+  echo "  ⚠️  This might indicate a parsing issue. Check the playbook output above."
 fi
 
 echo "  Total drift count: $DRIFT_COUNT"